BankFirst, Sioux Falls, South Dakota was closed July 17, 2009, by the South Dakota Division of Banking. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Share price does not trigger a bank closing and was not the reason for this failure. According to regulatory policy, there is no advance notice given to the public.

The good news is that no one lost any deposits as a result of
the closure of BankFirst. To protect depositors, the FDIC Board of Directors
approved the assumption of ALL of BankFirst’s deposits by Alerus
Financial, National Association, headquartered in Grand Forks, North Dakota.
The branch in Minnesota will reopen as a branch of Alerus Financial, National
Association, and the branch in South Dakota will reopen as a branch of First
Dakota
National Bank.

The total balance in your account(s) has been transferred to Alerus
Financial, National Association, and will be available for transactions
during
regular business
hours at the former BankFirst branches starting on Monday, July 20, 2009.

You may continue to use your same checks and ATM/debit cards until notified.

All Direct Deposits, including Social Security checks, will continue
as
usual.

DEPOSIT QUESTIONS

Over $250,000: What if I have more than $250,000
in my accounts at BankFirst?

All deposit accounts have been transferred in their entirety
to Alerus Financial, National Association. All former BankFirst offices
will reopen for normal business hours on Monday, July 20, 2009, as a branch
of Alerus Financial, National Association, in Minnesota and as a branch
of First Dakota National Bank in South Dakota.

As an All-Deposit Transfer transaction, the total of all deposit
accounts, whether within FDIC insurance limits or not, have been assumed by Alerus
Financial, National Association, and will be available for business as usual.

Account Hold: I have been advised there is a hold on my account. What does that mean?

It is possible a depositor's account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter.

ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?

You will be able to continue using your personal checks at this
time, and your ATM/Debit card will continue to work. The ATM machine will be unavailable for a short period of time on Friday for processing; however, it will be operational shortly after that is accomplished and will be available as usual.

Checks not honored: A merchant will not honor my check. What can I do?

A copy of this document or the press
release (www.fdic.gov/news/news/press/2009/pr09124.html)
can be provided as both documents state all deposits
have been transferred to Alerus Financial, National Association,
and it is business as usual. Copies of this press release
will be available at the former BankFirst branches. Depositors
or merchants can also call the FDIC at 1-800-523-8209 or the former BankFirst branches.

Claim Account(s): How do I claim my account(s)?

Your account(s) has already been transferred to Alerus Financial, National
Association, and your account(s) will be handled as usual. Any withdrawal,
renewal or additional deposits will "claim" your account. Please be advised
that if there is no activity in your account in the next 18 months, that
money will be turned over to your state as unclaimed property in accordance
with state law. Unclaimed property can be located by visiting www.missingmoney.com or
contacting your state treasurer’s office or office of unclaimed property.

Customer Impact: How does this failure affect me?

All deposits (both insured and uninsured) of BankFirst have been transferred
to Alerus Financial, National Association, and it will be business
as usual. If you held an account at BankFirst, you now have
an account at Alerus
Financial, National Association that is available to you
at your former BankFirst branches during
regular business hours.

Please note: Customers of both banks should continue to use their respective
existing branches until Alerus Financial, National Association or First Dakota
National Bank can fully integrate the deposit records of BankFirst. You will
be notified
in advance of this conversion.

The former BankFirst locations will reopen for normal business hours on Monday, July 20, 2009. You will have continued access to your money through your ATM/debit card and by writing checks.

If you had a loan with the bank, continue to make your checks payable to BankFirst and mail to the same address you have used in the past until you are instructed otherwise.

Deposits Existing at Assuming Bank: I already
have other deposit accounts with the new bank. When combined with
balances at this bank, my deposits exceed $250,000. Are all funds insured?

The transferred deposits will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.

CDs from the assumed bank are separately insured until the earliest maturity date after the end of the six-month grace period. CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period. If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Direct Deposits, Social Security: What will happen to my direct deposits?

Direct Deposits, including Social Security checks, will continue as normal. If you need to change anything in the future, please contact or visit your former BankFirst branch location to make those arrangements.

Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before
maturity?

No. You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.

Final Statement: When will I get my final account statement(s) from BankFirst?

Interest: Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, July 17, 2009
will be paid at your same rate. Alerus Financial, National Association,
and First Dakota National Bank will review rates and provide further information
soon.

Internet Connection: Will my Internet connection to BankFirst work?

IRAs: What if I have an Individual Retirement Account (IRA)?

Yes, all deposits, including IRAs have been transferred in their entirety to Alerus Financial, National Association. IRA funds are insured separately from other types of accounts up to $250,000.

If you close your IRA before maturity, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at
www.irs.gov.

Records/Account Histories: What if I need
information regarding my account during the time BankFirst
was in business?

Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?

Alerus Financial, National Association, will be responsible for mailing
your 1099 tax information. Your 1098 reporting will be done by the servicer
of your loan. You will be notified of any changes in ownership or servicing
of your loan.

Wire Transfer: Can funds be wired to me?

LOAN QUESTIONS

Automatic Payments: Will my automatic payment
still occur on its assigned date?

You should experience no disruption in this service. We encourage you to check your bank account the day after your scheduled draft to verify the transaction. If the transaction did not occur, please notify your loan officer to research your loan.

Escrows: Will you continue to pay my escrows?

All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify your new loan servicer immediately.

Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?

Payments: How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to BankFirst and utilize the same payment address information. You may continue to make your payments at the branch or by phone via check or credit card.

Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?

Any pre-payment penalty will be waived as long as FDIC as Receiver for BankFirst has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.

SBA Application in Process: What will happen to my SBA loan application in process?

The FDIC as Receiver for BankFirst will not be originating any new loans.

If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. You will be directed to the proper SBA contact to help you locate another approved lender.

If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you. You will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank.

Offers to Purchase Other Real Estate: I was in the process of negotiating the purchase of real property held by BankFirst. Will my offer still be considered?

The FDIC will review offers made to purchase real property from the former BankFirst and will respond to the offers as soon as possible. The review process includes ordering a new appraisal, which could take up to 60 days or more.

The FDIC as Receiver has hired CB Richard Ellis (CBRE) to handle the management and disposition of real property acquired from the institution. If you have questions regarding the status of your offer please feel free to contact CBRE directly. Below is the contact information for CBRE:

GENERAL QUESTIONS

All-Deposit Transfer versus Insured Deposit Transfer: Why
do all deposits, insured or not, pass is some transactions
but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

Unpaid Bill: I did some work for BankFirst
and have not yet been paid. What should I do?

Work for FDIC – Contract or Employment: How can I apply to work for FDIC as a contractor or employee?

You may access information about doing business with the FDIC at
Procurement
Opportunities (www.fdic.gov/buying/goods/opportunities/index.html)

You must also register in the Central Contractor Registration database at
www.ccr.gov.
Entry into the database is not a guarantee that a contractor will receive a future solicitation.

You may also call 1-866-308-4470 for more information or send an email to
ProcurementOpportunities@fdic.gov.
Please include a statement of your corporate capabilities, contact information and Minority
or Women-Owned Business (MWOB) status, if any.

To review positions currently available at the FDIC, visit
Careers at FDIC (www.fdic.gov/about/jobs/index.html).